India's central bank is informally urging lenders to cut ties with cryptocurrency exchanges and traders as the industry booms, despite a Supreme Court ruling that banks can work with the industry.

The guidance follows that India is drafting a law that would ban cryptocurrencies and punish anyone who trades in them, which would be one of the most sweeping blows to crypto investments in the world.

The Reserve Bank of India (RBI) in 2018 had forbidden banks from trading in bitcoin and other crypto assets. But in March 2020, India's top court overturned the RBI ban and allowed lenders to extend banking facilities to them.

As India battles a horrific surge of the COVID, no one is sure when the law of ban on crypto sanctions may be passed, which added investors' confusion.

Source: https://www.reuters.com/technology/indias-cenbank-tells-lenders-re-consider-ties-with-crypto-exchanges-traders-2021-05-13/